An automated system and method for measuring the performance of elements of a business enterprise and for valuing said elements on a specified valuation date. The performance of the elements are calculated using composite variables. Predictive models are then used to determine the correlation between the element performance and the enterprise value drivers, revenue, expenses and changes in capital. The element correlation percentages are then multiplied by capitalized value of future revenue, expenses and changes in capital, the three resulting numbers are then added together to calculate a value for each element. Finally, the relationship between the market value of the business and the calculated business value is optionally calculated for use in forecasting future equity prices.
Legal claims defining the scope of protection, as filed with the USPTO.
1. A data processing system for valuing contributions by one or more tangible or intangible elements of value to a value of a business enterprise, comprising: (a) processing means for processing data; (b) storage means for storing data; (c) first means for obtaining data related to the value of the business enterprise, the business enterprise having one or more tangible or intangible elements of value contributing to the value of the business enterprise, and the value of the business enterprise including a revenue component, an expense component and a capital component; (d) second means for calculating, for each one of the tangible or intangible elements of value, a composite variable characterizing performance of the tangible or intangible element of value of the business enterprise, second means including means for combining transaction data, transaction ratios and transaction trends to calculate the composite variable; (e) third means for calculating the revenue, expense and capital components of the value of the business enterprise; (f) fourth means for determining, for each one of the tangible or intangible elements of value, a percentage of the revenue component contributed by the tangible or intangible element of value, a percentage of the expense component contributed by the tangible or intangible element of value, and a percentage of the capital component contributed by the tangible or intangible element of value; and (g) fifth means for calculating a value for each one of the tangible or intangible elements of value of the business enterprise based on the revenue, expense and capital components of the value of the business enterprise and the percentages of the revenue, expense and capital contributed by the tangible or intangible element of value.
2. A data processing system as claimed in claim 1 , wherein said second means further comprises: (a) means for calculating for a range of time including a specified valuation date the composite variable for each one of the tangible or intangible elements of value, the revenue, expense and capital components of the value of the business enterprise and the percentages of the revenue, expense and capital components contributed by each one of the tangible or intangible elements of value.
3. A data processing system as claimed in claim 1 , further comprising: (h) optionally sub-dividing the revenue, expense and capital components of the value of the business enterprise into sub-components to yield a more detailed analysis.
4. A data processing system as claimed in claim 1 , wherein said third means further comprises: (a) means for using output from a predictive model to determine the percentage of the revenue component contributed by the tangible or intangible element of value, the percentage of the expense component contributed by the tangible or intangible element of value, and the percentage of the capital component contributed by the tangible or intangible element of value.
5. A data processing system as claimed in claim 1 , wherein said third means further comprises: (b) means for using output from a neural network to determine the percentage of the revenue component contributed by the tangible or intangible element of value, the percentage of the expense component contributed by the tangible or intangible element of value, and the percentage of the capital component contributed by the tangible or intangible element of value.
6. A data processing system as claimed in claim 1 , further comprising: (i) means for using the composite variables to evaluate the impact of the tangible or intangible elements of value on the value of the business enterprise.
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January 6, 1997
May 21, 2002
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